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(Solved): Chapter 19: International Trade Page(s) 645-647 19.2. How does international trade help the economy ...



Chapter 19: International Trade Page(s) 645-647 19.2. How does international trade help the economy? Given that the production possibilities frontiers (PPFs) for Mexico and the United States are as shown, which of the options given is Mexico’s best possible consumption outcome, assuming that it can trade with the United States using a 1:1 food–clothing ratio? Two graphs, one labeled Mexico and one Labeled United States. Both graphs have Clothing, C, in millions of units on the Y axis and Food, F, in millions of tons on the X axis. The Mexico graph has a negatively sloped line from 900 on the Y axis to 300 on the X axis, where a point is labeled P P F mexico. There is a point on the line at 150 on the X axis and 450 on the Y axis that has the following description, mexico chooses to produce 150 million tons of food and 450 million articles of clothing on its own. On the United States graph, there is a negatively sloped line from 400 on the Y axis to 800 on the X axis, where a point is labeled P P F, U S. There is a point on the line at 200 on the X axis and 300 on the Y axis that has the following description, The united states chooses to produce 200 million tons of food and 300 million articles of clothing on its own. 250 units of clothing and 700 units of food 400 units of clothing and 500 tons of food 350 units of clothing and 450 tons of food 600 units of clothing and 350 tons of food



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